In the morning news on October 27th, Beijing time, it was reported that AMD’s third-quarter profit and revenue announced after the market closed on Tuesday exceeded analysts’ expectations, and its fourth-quarter performance expectations were also very strong.The stock rose 1% in after-hours trading. The following is the performance of the chip maker in the quarter ended October 2 relative to the market’s average expectations:
Earnings per share: adjusted for 0.73 US dollars, the market is expected to be 0.67 US dollars, a year-on-year increase of 16%.
Revenue: 4.31 billion US dollars, the market is expected to be 4.12 billion US dollars, a year-on-year increase of 54%.
AMD expects revenue in the fourth quarter to be 4.5 billion U.S. dollars, higher than analysts’ expectations of 4.25 billion U.S. dollars. AMD expects a year-on-year growth of 39% in the fourth quarter.
AMD is one of the biggest beneficiaries of the surge in electronic product sales in the past 18 months, as its CPUs and GPUs power personal computers, servers and game consoles. These revenues are included in AMD’s computing and graphics division, which reported revenue of $2.4 billion, an increase of 44% year-on-year.
The PC market has slowed down from its rapid development a year ago. At that time, people all over the world still needed computers to work or study at home. But AMD said that as customers choose more powerful processors, the average selling price of its chips will increase.
AMD reported that its embedded, enterprise-level, and semi-customized server chips and game console chip revenues were $1.9 billion. The increase in Epyc server chips and “semi-custom” (ie chips sold to game console manufacturers) revenue Driven by a year-on-year growth of 69%.
along withMicrosoftGiants such as Google and Google buy AMD chips to run cloud services, and the company is gaining share in the server market with its Epyc processors. AMD CEO Su Zifeng said in a statement that data center revenue has doubled year-on-year and currently accounts for about 25% of AMD’s total revenue.
At the same time, Sony’s Playstation 5 and Microsoft’s newXboxGame consoles are still in high demand, and even one machine is hard to find. Similarly, AMD’s graphics and central processing units are also difficult to buy in stock in stores.
“As the demand for the latest Microsoft and Sony game consoles is still very strong, semi-custom revenue continues to grow.” Su Zifeng said on Tuesday’s analyst conference call, “As we further increase the supply to meet the continuous game consoles Demand, we expect semi-customized revenue to continue to increase in the fourth quarter.”
AMD is a fabless chip company. It is responsible for designing the internal technology of the chip, and then outsourcing the manufacturing business to foundry partners such as TSMC and GlobalFoundries. Su Zifeng predicted in September that the chip shortage will be alleviated in 2022.
AMD continues to control costs and improve profitability. The company’s gross profit margin was 48% in the latest quarter, higher than the 44% in the same period last year, mainly because customers have bought more expensive processors. AMD expects a gross profit margin of 49.5% in the fourth quarter. AMD’s net profit for the quarter was $893 million.
In October last year, AMD announced the acquisition of Xilinix for 35 billion U.S. dollars, which will enable the company to compete with each other in the data center chip market.IntelStart a better competition. AMD said that the transaction is still expected to be completed before the end of 2021, and that “good progress” has been made in terms of supervision.
AMD also revealed that the company repurchased $750 million of stock this quarter. Its stock price has risen by more than 30% this year.